Japan

Abstract

The policies of EC92 convey to outsiders two contradictory messages. One is that the single market will increase aggregate demand and create greater imports from outside, while the other is that possibly strengthened protectionism will exclude outsiders and divert imports from them to member suppliers. The Japanese government has been expressing concern over the latter possibility on various occasions and has been warning against any move toward strengthened restriction. However, with a careful overview of recent Japan-EC economic relations, one can easily see that Japanese multinational corporations (MNCs) have already participated in the moves toward EC92, and it would not benefit the interests of the Community to sever this coexistence. Japanese MNCs view the problem less pessimistically than is implied their government’s expressed concerns.